On July 1, 20X1, CriCo takes out 10%, $10000 note payable that isrndue on July 1, 20X1. No interest is accrued at year-end 20X0. If no corrections are made, which of the following statements is correct?

A). on CriCo's income statement, net income is understated by $500 

B). net income is overstated by $500 

C). on CriCo's balance sheet, retained earnings is understated by $500 

D). on balance sheet, liabilities is overstated by $500